This invention relates to the redemption of product marketing rebates, and more specifically to a business method for electronically redeeming product marketing rebates.
Product marketing rebates are well-known to most consumers and are an established weapon in the marketer""s arsenal of methods to entice a consumer to buy a product. Traditionally, manufacturers have individually offered rebates of a predetermined cash value to consumers who buy a designated product and mail in a rebate claim that meets certain criteria. Typically, this criteria includes filling out a specific rebate form with the name and address of the consumer, enclosing a cash register receipt showing where and when the item was purchased, and sometimes enclosing the Universal Product Code (UPC) or other designated portion of the product packaging to show that the product was actually consumed. After 6-12 weeks, the consumer then receives a check in the mail from the manufacturer or from a xe2x80x9cfulfillment housexe2x80x9d contracted by the manufacturer to administer the rebate program.
The process of redeeming a rebate is one that can be time consuming for the consumer, requiring the consumer to keep track of register receipts and UPCs for each product, fill out forms, mail each form to a different manufacturer or fulfillment house, and cash each check that returns from the manufacturer or fulfillment house. Thus, because of the aggravation and work required to take advantage of rebates, many consumers choose not to participate in such rebate offers at all. The purchasing decisions of such reluctant consumers are therefore not influenced by rebates, much to the chagrin of product marketers.
Recently, however, certain retailers have offered to consumers the opportunity to bundle all their rebate claims in a single, easy-to-use form that can be sent to the retailer (or the retailer""s fulfillment house designee) to obtain rebates for all qualified items purchased at that retailer. The rules of such consolidated rebate programs typically limit the customer to only one submission within a certain time period. Each submission generally requires the consumer to send in the retailer""s pre-printed form, which identifies all the rebate offers by a specific number, along with the original cash register receipt. The consumer must typically manually fill out the pre-printed form as directed, circle the rebated items on the cash register receipt, and write each identifying rebate offer number next to each encircled item on the receipt. Then, after what is still a 6-12 week period, the customer typically receives a check in the mail from the retailer for the total amount of rebate offers fulfilled.
The consolidated rebate fulfillment method comprises a number of steps, many of which do not include the consumer. Referring now to the flowchart depicted in FIG. 1, the traditional consolidated rebate business method is outlined. First, in step 10, the consumer makes a purchase from the retailer at the point of sale (POS). Next, in step 20, the consumer checks the appropriate boxes on the pre-printed form, writes in the consumer""s name and address, circles the appropriate entries on the cash register receipt, hand writes the rebate offer numbers next to those entries, and mails in the form and attached receipts to the designated address. In step 30, a fulfillment house, typically a contractor hired by the retailer to administer the rebate program, processes the paperwork received from the consumer. Finally, in step 40, the consumer receives the check.
Step 30 includes many sub-steps. In step 32, a mailroom worker at the fulfillment house must first physically open the mail. Sometimes, in order for the fulfillment house to ensure it has enough workers to meet the turnaround deadlines guaranteed to the retailer, the fulfillment house must somehow quantify the mail to be sure that it can be processed in time. Thus, the mail opening step may also include a mail quantifying step, such as a bulk weighing step where the total weight of the incoming offers is determined to estimate how many offers have been received.
Next, in step 34, an order processing worker verifies that the products encircled on the receipt match the rebate offer numbers indicated on the pre-printed form, verifies the date of the receipt is within the qualifying time period, and verifies other details (number of items purchased, etc.) to be certain that the consumer has met the initial criteria for claiming the rebate. The order processing worker may also record codes indicating the number of items requested for refund and record data for variable rebate offers. For example, if the refund amount is dependent on the number of items purchased, a code may be recorded indicating how many of the items were purchased. If the rebate amount is based on purchase price with designated minimum and maximum purchase prices, the order processing worker may write down the amount to be refunded, either the actual purchase price if within the proper range, or the minimum or maximum as specified. If the consumer does not qualify for a particular rebate for which a claim was submitted, the order processor may record a particular xe2x80x9cunqualifiedxe2x80x9d code indicating that the claim is unqualified and, optionally, a standard category of reasons why the claim is unqualified.
A data entry worker then physically enters the data contained on the form into a computer database in step 36. This data may include accounting information such as the promotion number, the voucher number, the operator number, and mail count indicators; consumer personal information such as the name, address, state, and zip code; refund information, such as the total number of items and amount requested for refund and the list of refund items; and supplemental information such as the store number and unqualified codes, if present.
Thus, after data entry, the computer database now holds such data as the name and address of the consumer, the offer numbers for which the consumer qualifies, and information relating to the number and types of items purchased. An audit step may also be performed after the order processing step 34 and/or the data entry step 36 as quality control to assure that the number of errors have been minimized. Unqualified claims, in particular, may be reviewed to assure that the claim is indeed unqualified. At step 38, the data entered into the computer is processed through a fraud detection step. Often, the fraud detection step encompasses processing the information using computer software that can verify, among other things, that the person named to receive the rebate actually lives at the address given, that only one offer per household address is being granted, and that the person named to receive the rebate is not on a list of known fraudulent rebate claim submitters. Frequently, at least one or more components of the fraud detection step may involve using a third party computer database, such as databases maintained by the postal inspection branch of the U.S. Postal Service, which may be shared or utilized by many different fulfillment houses. The process from mail opening to inputting, verifying, and checking the data may itself take several weeks, depending on the volume of mail being processed and the number of workers processing the rebate claims. The mail may also be retained in storage for a designated amount of time and destroyed per a set mail retention guideline, thus requiring storage space and destruction capabilities.
The information provided by the consumers who claim rebates can be used by the retailer, if desired. For instance, the database of consumers claiming rebates indicates the names and address of that retailer""s customers who buy the type of items for which rebates were requested. Thus, the retailer can optionally use the database of names and addresses compiled by the fulfillment house to target directed advertising to these consumers. The retailer can conduct this directed advertising itself and/or can sell the names and preferences of these consumers to other marketers, advertisers, and manufacturers who may wish to target those consumers. The database of consumers and their buying habits is also available to the fulfillment house, who may also use the information, provided their agreement with the retailers or manufacturers allows them to do so.
The gathering, selling, and processing of marketing information about consumers is a very profitable industry that is only partially tapped by such rebate programs. Because typically only the rebate-specific information is entered into the customer database from the cash register receipts supplied by the consumers, the information gathered during such the rebate fulfillment process is necessarily limited. To gather information about every purchase that a consumer makes, many retailers have begun using xe2x80x9cloyalty cardsxe2x80x9d. Loyalty cards are typically a credit-card-sized card that the consumer or cash register attendant swipes or scans into the POS cash register system prior to or during the checkout process. The loyalty card typically contains a magnetic or UPC marking that identifies the individual associated with that card, generally by a serial number contained on the card that matches to a specific customer record in a separate customer database. As a condition for receiving a card from the retailer, the consumer usually must provide their name and address, as well as other demographic information (age group, household income, family size, etc.), so that a record of personal information can be stored in a database and matched to the card serial number. To entice the user to supply the loyalty card at the POS each time the consumer purchases goods at the retailer, the retailer usually offers special discounts or offers only to card users. Through the use of a loyalty card, therefore, retailers can keep a frequently updated data record of every purchase made by a particular consumer over time.
By analyzing the data collected through the loyalty card system, not only can the retailer identify individual consumers to be targeted for special offers, but the retailer can also analyze general demographic trends among large groups of purchasers to provide feedback on how pricing or other incentives affect consumer purchasing decisions. A drawback of loyalty cards is that not every consumer is willing to participate, nor do the consumers always remember their card. In fact, many consumers know that even if they have forgotten their card, they may request a temporary card at the service desk for the purposes of receiving the special offers that day, thus bypassing the retailer""s system of tying purchases to individual consumers.
Certain retailers have begun to tie rebate offers to their loyalty cards such that every qualified purchase (xe2x80x9cqualifiedxe2x80x9d meaning that the purchase has a rebate associated with it) by a consumer using the loyalty card is tracked automatically by the retailer. At the end of a designated period, the retailer then mails the customer a certificate that can be applied to future purchases by the consumer only at that retailer. In this way, the retailer has eliminated the paperwork for the consumer who shops and uses the loyalty card, thus providing an incentive for the consumer not only to shop at that retailer""s establishment, but also to use the loyalty card and, once the certificate redeemable by the retailer is received, to return again to redeem the certificate.
Although the loyalty card-certificate system provides several advantages over the consolidated rebate system in the form of less paperwork for the consumer and for the retailer who coordinates the program, one of the drawbacks is that such a system relies on a loyalty card. Although consumers have come to expect that they need to carry a loyalty card to, for example, their grocery store, if every type of retailer were to require a loyalty card, the consumer""s wallet or pocketbook would soon be bulging with loyalty cards for every retailer they patronizexe2x80x94drug store, office supply store, toy store, computer store, department store, shopper""s club, and so forth. Additionally, there is some financial burden on the retailer that is inherent in the administration of a loyalty card system.
Therefore, there is a continued need in the field to provide a method for redeeming product marketing rebates in a fast, cost-effective, consumer-friendly manner, and for allowing retailers to gather more information about their customer""s purchasing habits, without requiring a separate loyalty card to be entered as part of the transaction. Furthermore, it is desirable to provide a method that it is flexible enough to accommodate multiple formats for rebate claims.
In accordance with this invention, there is provided a method for processing one or more product marketing rebate claims submitted by a consumer in satisfaction of one or more rebate offers having a value, each rebate offer comprising an offer to provide a cash value in return for a purchase of one or more designated products. Purchase of the one or more designated products occurs in one or more qualified transactions, each qualified transaction having a transaction serial number assigned thereto. The transaction serial number is recorded in a point-of-sale data processing and storage system and recorded on a receipt issued to the consumer. The rebate processing method comprises providing a designated site connected to a global computer information network and accessible by the consumer. A rebate claim is received on the designated site, the rebate claim comprising (i) at least one transaction serial number corresponding a qualified transaction, and (ii) identifying information corresponding to the consumer. A stored data record is stored, comprising the at least one transaction serial number and the identifying information corresponding to the consumer. An electronic file transfer is received from the data processing the storage system. The electronic file transfer comprises at least one purchase data record comprising at least (i) the transaction serial number corresponding to the qualified transaction in which the at least one designated product was purchased by the consumer, and (ii) an identification of each designated product purchased by the consumer. Each stored data record is associated with a corresponding purchase data record having an identical transaction serial number, and the stored data record and the corresponding purchase data record associated therewith are then processed to validate the rebate claim. Then, the value of the rebate claim is transferred to the consumer. The designated site may be accessible to the consumer by a computer connected to the global computer information network or via a telephone connected to a computerized telephone answering system connected to the designated site and accessible by calling a designated telephone number.
After making an initial rebate claim, the consumer may choose to delay processing of the rebate claim until one of: a future instruction by the consumer to proceed, or expiration of the qualifying time period. When the consumer chooses to delay completing the method until expiration of the qualifying time period, the consumer can subsequently access the designated site and transmit additional transaction serial numbers before expiration of the qualifying time period.
The receipt issued to the consumer may comprise a dedicated accounting of the one or more designated products having rebate offers purchased by the consumer in the qualified transaction. The consumer may be issued a primary receipt and a secondary receipt, wherein the secondary receipt consists essentially of: a record of the serial number of the qualified transaction and a dedicated accounting of only designated products having rebate offers. The primary receipt comprises an accounting of all purchases by the consumer in the qualified transaction.
The above method may also be modified to allow at least one consumer to transmit information to the designated site over a global computer information network whereas at least one other consumer completes and mails a paper form to a fulfillment housing administered by the fulfillment administrator and makes a rebate claim by providing the serial number of the qualified transactions and personal information on the paper form. The fulfillment administrator, upon receipt of the paper form, accesses the designated site of the global computer information network, enters and transmits to the designated site the other consumer""s personal information and the serial numbers corresponding to the other consumer""s qualified transactions, and stores as a stored data record the personal information and the serial numbers transmitted by the other consumer.
In a further embodiment, at least one consumer may purchase the one or more designated products using a smart card having a card number and a computerized data storage means, at which time the transaction serial number is stored as computerized data on the smart card computerized data storage means. The consumer can then enter the one or more transaction serial numbers and the personal information by using a smart card reader to automatically download the computerized data representing the stored transaction serial number and the card number from the smart card into a card reader. In such case, the card number comprises the personal information from which the consumer can be identified. The fulfillment administrator then transfers the cash value of the rebate claims to the consumer by crediting the smart card.
In another embodiment, the consumer may purchase the designated product using a designated card such as a credit card having a corresponding credit account, a debit card having a corresponding bank or debit account, or a smart card having computerized data storage means. The designated card is sponsored by the retail network and has a card number. In such case, the fulfillment administrator receives in the electronic file transfer from the POS system at least one transaction data record comprising the designated card number and the corresponding transaction serial number for the qualified transaction. The fulfillment administrator already has on file a stored data record comprising personal information about each consumer indexed by the designated card number, so the fulfillment administrator then associates the transaction data record with the corresponding stored data record for the designated card number. The stored data record is updated with the transaction serial number, and the remainder of the method remains the same, except that the cash value of the rebate claims may be credited to the consumer by crediting the corresponding credit account, the debit or bank account, or the smart card. The above data entry method using the designated card for data entry and transmission to the dedicated site may be integrated with the internet data entry and paper form data entry methods.
The invention also comprises a system for processing a plurality of product marketing rebate claims submitted by a plurality of consumers in satisfaction of a plurality of rebate offers in accordance with the method of this invention. The system comprises a point-of-sale data processing and storage system adapted to process purchases by consumers and to identify each qualified transaction with a serial number, and a receipt comprising a record of the serial number issued to each consumer by the point-of-sale data processing and storage system. The system further comprises means for receiving rebate claim data in an electronic format from the consumers, such as a designated site connected to a global computer information network and accessible to the consumers through the global computerized information network, or an interactive computerized telephone processing system accessible to the consumers at a designated telephone number. The rebate claim data for each consumer comprises at least one transaction serial number and a consumer identifier. At least one electronic data storage and receiving device is connected to the designated site for storing as a stored data record the data for each consumer as received by the designated site and for receiving and storing an electronic file transfer from the point-of-sale data processing and storage system. At least one data processor is connected to the electronic data storage and receiving device and is adapted to associate each serial number in each stored data record with each purchase data record containing an identical serial number, process each purchase data record and associated stored data record to validate each rebate claim, and check each validated rebate claim for fraud. Finally, the system comprises a transfer device for transferring the cash value of the rebate claims to the consumer.
The system may comprise at least one computer usable by the consumer to access the designated site on the global information network, such as a computer located at the residence or place of employment of the consumer or at an establishment operated by the participating member, such as an in-store kiosk. The transfer device for transferring the cash value of the rebate claims to the consumer may comprise a smart card adapted to receive debits and credits having cash value and means for crediting the smart card with the cash value, or may comprises a check adapted to be mailed to the consumer.
The system may further comprise a paper form adapted for the personal information to be written upon the form and adapted to be enclosed in a mailing to a paper form processor along with one or more serial numbers. The serial numbers may be written on the form, or merely provided in some form on the receipt or copies of the receipt mailed with the form. In such case, the system also comprises a paper form processor capable of receiving the paper form and entering the transmitting the personal information and the serial numbers to the designated site on the global computer information network.